S&P Confirms That NJ Plan To Pay 50% Of Required Pension Contributions Is Bad; Maintains Negative Outlook
Standard and Poor's credit rating analysts for the state of New Jersey, David Hitchcock and John Sugden, apparently think that funding only half of your state's annual actuarially determined contributions is a bad thing...who knew? So, just to make sure we achieve crystal clarity here, S&P believes that adding to NJ's $66 billion pension underfunded liability, which would be much higher but for a ridiculous assumption the state makes in setting its return on assets at an artificially high rate of 7.65%, each and every year by contributing less to the fund than what is